COMPASS IMMOBILIER: Purchasing French Property - first contract (part 1)

Stage 2:

The first contract

Those who have purchased property in certain countries will be all too aware of the fact that after an offer, several weeks can elapse before any binding agreement is entered into and then one party can pull out just before exchange of contracts with no recourse possible, thus leading to a loss of money and time. The French system seeks to avoid this possibility and it is this aspect which is fundamentally different from real estate purchases in some other countries.

In France, after an offer is made on a property and accepted, a compromis or sous-seing privé is drawn up. There are other forms of contract such as the promise to sell or purchase ('promesse de vente' or 'promesse d’achat') which function in a different manner and are most often encountered in the Paris region.

This contract can come very shortly after an offer, very occasionally even on the same day. It is extremely important because it lays down the terms and conditions of the purchase and governs the timetable, the checks to be made etc. Both parties will be tied into the purchase of the property subject to conditions that have to be met prior to completion taking place (conditions suspensives). If the conditions are met then the sale will occur. If they are not met, both parties will be free of any engagement and the deposit paid will be returned to the purchaser. If the conditions are met but one party decides not to go ahead, what occurs will normally be governed by the clause in the compromis in this respect (clause pénale) and one party can take legal action to force the other to respect his or her obligations. Generally if it is the purchaser who does not wish to proceed, he or she will lose the deposit and may be liable to pay additional compensation.





The following are types of conditions suspensives of a contract:

• that there is nothing in the town planning documentation that adversely affects the property or is likely to diminish its value e.g. a plan to build a TGV route across the garden;
• that there are no easements over the property that have not been revealed to the purchaser;
• that there is no mortgage over the property that cannot be paid off from the purchase price;
• that the purchaser obtains a mortgage;
• that outline planning permission is obtained for conversion or extension of the property.

There are also a number of other conditions that may be required depending upon the individual circumstances. Care should always be taken to ensure that these conditions are validly worded and offer as much protection as possible to the parties.

Copyright All Rights Reserved Victoria Headdon, Compass Immobilier